Axis Bank, India’s third largest private sector bank, provides a comprehensive range of banking products and services, including flexible-tenure Recurring Deposits (RDs). The appealing RD interest rates enable various Axis Bank local and non-resident customers to create a passive and reliable source of income.
Axis Bank Recurring Deposit is an excellent approach to begin saving money every month. Axis Bank offers recurring deposit accounts with tenure ranging from 6 months to 120 months (10 years).
Axis Bank RD Interest Rates 2024
| 5.75% |
6.00% |
| 6.00% |
6.25% |
| 6.75% |
7.50% |
| 6.80% |
7.55% |
| 7.10% |
7.85% |
| 7.05% |
7.80% |
| 7.00% |
7.75% |
Features of Axis Bank Recurring Deposit
Here are the key benefits of choosing Axis Bank RD interest rates for your recurring deposit.
1. Tenure: Axis Bank RDs have tenure ranging from 6 months to 120 months.
2. Deposit Amount: To create an Axis Bank RD account and benefit from it, you must deposit a minimum of 500.
3. Additional Interest: Senior citizens can benefit from an extra 0.50% interest rate of the regular rates.
4. Penalty: Account holders will be charged a late penalty if they do not pay their payments on time. The penalty for late payment is Rs. 10 per Rs. 1000 per month.
5. Premature Withdrawals: Premature withdrawals from an Axis Bank RD are permitted. However, the bank doesn’t allow partial withdrawals.
6. Taxation: TDS deduction on Axis Bank Recurring Deposit interest rates is applicable according to the rules in effect at the time the account is opened.
How to Open an RD Account in Axis Bank?
Individuals can open an Axis Bank Recurring Deposit account.
1. Offline Process
Collect all of the documentation required for opening an Axis Bank RD account and go to a local bank to request the intimation procedure. Throughout the application process, you will be assisted by an Axis Bank representative. It is advised that you bring photocopies of your documentation with you.
2. By Net Banking
Step 1: Go to the official website of Axis Bank.
Step 2: Hover over the ‘Login’ button at the top of the page. Select ‘Login’ from Internet Banking’s ‘Personal’ section.
Step 3: Select “Create Recurring Deposit.”
Step 4: Complete the form with the depositor’s and nominee’s details, if suitable.
Step 5: Once confirmed, the deposit amount will be deducted from the customer’s savings account, and a receipt will be emailed (for those who have registered for e-statement) or sent to the customer via post.
3. By Mobile Banking
Step 1: Open Axis Mobile, the bank’s mobile application.
Step 2: Click on the ‘Open RD’ button.
Step 3: Upon confirmation, the chosen amount will be deducted from the associated savings account and an RD account will be opened promptly.
If you have opted for an e-statement, you will receive a confirmation email; otherwise, a physical statement will be sent to you.
How to Calculate RD Interest Rates in Axis Bank?
The RD interest rates on Axis bank recurring deposits are compounded quarterly.
This is the formula to calculate the maturity value .
A= P x (1+R/N) ^ (Nt)
Here ,
- A Represents the Maturity Amount
- P Represents the Recurring Deposit
- R Represents the Rate of Interest
- T Represents the Tenure
- N represents the number of compounding interest .
Example:
Akash deposits Rs. 500 each month for 9 months. The rate of interest applicable Recurring Deposit account is 6.5% for regular RD. What will be the sum on maturity ?
Solution:
A = P x (1+R/N)^(Nt)
= 4500 x (1+6.5/4)^(4×9/12)
= ₹4,623.
Hence, the interest income will be generated from the recurring deposit is ₹123.
Calculate Axis Bank RD Online
The simplest approach to determine how much profit you will get when your Axis Bank RD account matures is to utilise the online Axis Bank RD calculator, which can be found on a number of websites. This is by far the easiest way to evaluate interest. All you have to do is enter the basic details in the fields such as amount, tenure, and interest rate.
Eligibility Criteria to Start an RD Account with Axis Bank
1. The person applying must be an Indian resident or a member of a HUF (Hindu Undivided Family).
2. NRIs can open an RD account using their NRO or NRE accounts.
3. A minor can open an Axis Bank RD account under parental guardianship to look after your funds.
Documents Required for Starting an RD Account
For Opening an RD in AXIS BANK Investors must ensure that they have the following documents with them :
1. Proof of Identity
- Pan card
- Voter ID
- Aadhaar card
- Ration card including a photograph
- Driving license
- Senior citizen ID
- Passport
2. Proof of Address
- Electricity bill
- Telephone bill
- Bank statement with cheque
- Passport
- Identity card issued by Post Office
Axis Bank RD Premature Withdrawal Rules
The rules for premature withdrawal of investments from Axis Bank RD accounts are as follows.
1. If you withdraw your domestic RD prematurely, you must pay a penalty of 1% lower than the current interest rate or 1% less than the contractual rate, whichever is lower.
2. It is important to understand that partial withdrawl from the RD is not permitted. Furthermore, if monthly payments are not made on time, the bank will levy charges Rs. 10 per Rs. 1000 every month.
3. There will be no penalty if you withddraw the whole amount within 14 days after opening your Axis Bank RD account.
4. Premature withdrawals of NRE/NRO Axis Bank RD incur no penalty.
FAQs ​
Q1. What is the minimum and maximum time required to start an Axis Bank RD?
Answer:
For recurring deposits, Axis Bank provides terms ranging from six months to ten years.
Q2. Can I open an Axis Bank recurring deposit online?
Answer:
Yes, you can open an Axis Bank recurring deposit online.
Q3. What is the required minimum deposit for an Axis Bank RD?
Answer:
Axis Bank RDs need a minimum deposit of Rs.500.
Q4. Is there a nomination facility in Axis Bank RD?
Answer:
Yes, Axis Bank offers a nomination facility for customers with RD accounts.Only one nominee is permitted per account, whether in a single or joint name.The nomination procedure must be carried out in accordance with RBI regulations.The nomination can be changed by making a declaration in the proper forum.
Q5. What is the maximum TDS limit?
Answer:
In a fiscal year, it is Rs.40,000 for normal residents and Rs.50,000 for senior persons.
Q6. Is there any tax on the interest charged by the bank?
Answer:
Yes, under the Income Tax Act of 1961, the interest generated on the RD account is taxable. If the total predicted interest exceeds Rs. 1000 in a fiscal year, TDS is deducted, i.e. 10% if the PAN information is given and 20% if pan details not given.
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